Yesterday data on the UK was strong. Public Sector Net Borrowing in July dropped 1.6 billion pounds vs. expectations for -3.7 billion pounds. However, it was better than data in June, 10,5 billion pounds. CBI Manufacturing Book Balance in August was 0, vs. forecast for -8 and -12 in July. Surplus of the UK budget was 1.6 billion pounds against estimates for 3.7 billion pounds and deficit of 10.2 billion pounds in June. The pound did not fall considerably amid the Minutes of FOMC meeting which investors regarded as negative. The pound dropped 5 points.
Today the major investors are considerably interested in the British currency. By 7:00 UTC+4 the pound dropped 80 points. As it was said the firmness of the pound would continue until the first clear signals for US dollar strength. From the technical point of view the first signal for further decline of the pound was observed, the Marlin oscillator moved into the negative zone. The first bearish target is support of price channel on the H4, 1.5545, after the testing level 1.5572, the high of August 8 is broken. Here the second technical signal for continuation of the decline will occur; the price will break the support of Kruzenshtern line, blue sliding on the H4. When the pair moves off the channel the target 1.5482, local support of August 7-8, opens.
